China released 10 Indian soldiers and then Indian news media claims it captured Chinese soldiers
If India really captured Chinese soldiers then why not release videos or photographic proof?
That said I think Modi made a mistake claiming that China did not occupy Indian territory regardless of the original intentions of his claims. This is detrimental regardless of his next steps:
1) If he chooses to escalate then the statements are damaging to the morale of Indian soldiers. Basically he implied that they died for nothing despite also stating that their deaths will not be in vain.
2) If he chooses to deescalate the opposition will claim that he is a sellout and it will damage his party’s political position.